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Debtors Collection Period - Formula
Fomula is given below:
Debtors collection period = 365/ Debtors turnover
Or (365 x Average debtors)/ Annual credit sales
This refers to credit duration that was granted to the debtors on the duration within that they were imaginary to pay their dues to the firm.
The shorter the collection period/credit duration the higher the debtors turnover and vice versa. If no opening debtors are provided requires the closing debtors to represent average debtors.
The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:- Liabilities Amount Assets
Important Points for Capital Market Authority Apart from the above roles, CMA can assume the given steps to encourage progress of stock exchanges in US or other countries.
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